Amazon.Com, Inc's (NASDAQ: AMZN) cloud computing unit, Amazon Web Services, shared plans to invest close to 2.3 trillion yen ($15.5 billion) in Japan over five years between 2023 and 2027.
AWS earmarked the funds to boost data centers and bolster business operations.
Thanks to the artificial intelligence frenzy, Amazon looks to tap the growth in the volume of data processed by the move, Nikkei Asia cites AWS Japan at a news conference in Tokyo on Friday.
AWS doled out 1.51 trillion yen in 12 years between 2011 and 2022 to invest in data centers for processing and storing customer data in Japan and for general operations.
The investment in Japan will exceed the ₹1.056 trillion ($12.7 billion) AWS plans to invest in India.
On Thursday, Amazon disclosed that John Felton is taking over as AWS CFO, reporting to Brian Olsavsky, succeeding Richard Puccio, who plans to leave the company, the Wall Street Journal cites familiar sources. Puccio joined the company in 2021.
John has been with the company for over 19 years, including the last 12 years within Operations. Udit Madan will take over leading Worldwide Operations.
AWS, considered a cash cow for the company, battled slower growth as corporate clients curtailed their spending due to economic uncertainty.
Amazon had a very significant year in 2023. It was committed to integrating robotics and AI technologies across its operations, including its warehouse operations and logistics unit, revamping its grocery unit, and developing AWS's custom silicon chips while downsizing its workforce.
The downsizing at Amazon continued, the latest being close to 30 employees in its Buy with Prime unit, affecting less than 5% of the workforce at the corresponding unit.
Some affected employees worked in Amazon's multichannel fulfillment unit alongside Buy with Prime under the "Project Santos" organization, CNBC reports.
Buy with Prime helped online stores offer the same two-day shipping benefits available to Prime subscribers.
Amazon downsized by over 27,000 across the company that began in 2022. In 2024, Amazon continued layoffs in its Prime Video, MGM, Twitch, Audible, and Amazon Pay units.
The stock gained 64% last year.
Price Action: AMZN shares are down 0.12% at $153.35 on the last check Friday.